European CLO Market Sees Unprecedented Growth in Risky Loan Vehicles
Thursday, 13 June 2024, 04:00
European CLO Market Overview
European collateralized loan obligation (CLO) issuance has reached record levels, exceeding €22 billion in the initial five months of the year. Investors are showing a notable appetite for risky loans through these structured vehicles, aiming for higher returns.
Investor Demand for Yields
Investors are gravitating towards CLOs as they seek increased yields in the current market environment, where returns are harder to come by.
- CLO issuances have become popular among investors chasing higher returns amidst low interest rates.
- The soaring demand indicates a rise in the appetite for risky assets in the financial sector.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.